Natco Pharma Ltd board approves buyback

The Board of Directors of Natco Pharma Limited (the "Company") at its meeting held on 8th March, 2023 has approved a proposal to buyback by the Company of up to 30,00,000 (Thirty Lakhs) fully paid-up equity shares of face value of Rs. 2/- (Rupees Two only) each ("Equity Shares") at a price not exceeding Rs. 700/- (Rupees Seven Hundred only) per Equity Share (the "Maximum Buyback Price") payable in cash for an aggregate amount not exceeding 210,00,00,000/- (Rupees Two Hundred and Ten Crores only) (the "Maximum Buyback Size"), from the shareholders of the Company excluding promoters, promoter group and persons who are in control of the Company, via the "Open Market" route through the stock exchanges mechanism, i.e., using the electronic trading facilities of BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE" and together with BSE the "Stock Exchanges"), in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") and the Companies Act, 2013 (including the rules and regulations framed thereunder), as amended, and other applicable provisions (the process hereinafter referred to as the "Buyback").

At the Maximum Buyback Price and for the Maximum Buyback Size, the indicative maximum number of Equity Shares bought back would be 30,00,000 (Thirty Lakhs) Equity Shares ("Maximum Buyback Shares") which is 1.64% of the total number of paid-up Equity Shares of the Company. If the Equity Shares are bought back at a price below the Maximum Buyback Price, the actual number of Equity Shares bought back could exceed the indicative Maximum Buyback Shares (assuming full deployment of Maximum Buyback Size) but will always be subject to the Maximum Buyback Size. Further, the Buyback shall not exceed the Maximum Buyback Size, which represents 5.13% and 5.04% of the aggregate of the total paid-up capital and free reserves of the Company based on the audited standalone financial statements and audited consolidated financial statements of the Company as at March 31, 2022 respectively and is within the statutory limit of 10% of the aggregate of the fully paid-up equity share capital and free reserves of the Company under the board approval route under the Section 68(2)(b) of the Companies Act, 2013 and pursuant to the proviso to Regulation 5(i)(b) of Buyback Regulations.

Maximum Buyback Size shall not include any other expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI, advisors' fees, stock exchange fee for usage of their platform for Buyback, brokerage, costs, fees, turnover charges, applicable taxes such as buyback tax, securities transaction tax, Goods and Services Tax (if any), stamp duty, etc., publicannouncement publication expenses and other incidental and related expenses and charges.

Shares of Natco Pharma Limited was last trading in BSE at Rs. 566.15 as compared to the previous close of Rs. 562.10. The total number of shares traded during the day was 11235 in over 817 trades.

The stock hit an intraday high of Rs. 570.65 and intraday low of 561.75. The net turnover during the day was Rs. 6367009.00.

Source : Equity Bulls

Keywords

NatcoPharma INE987B01026 Buyback OpenMarketRoute